5 low-cost ways SMEs can start their sustainability journey

The appetite for sustainability among small and medium enterprises (SMEs) in the UK is growing. More entrepreneurs are launching and shaping their businesses with environmental consciousness and a commitment to social responsibility.

However, many are still hesitant to take action. According to Aldermore’s Green SME Index, one in four SMEs have ‘green intentions’, yet the number actually adopting formal sustainability practices has not increased since early 2023.

So, what’s getting in the way? Alongside uncertainty about what to do, one of the biggest barriers is the belief that sustainability is expensive.

Quality Company Formations has been certified carbon neutral for over four years, and we want to show fellow UK SMEs that becoming more sustainable doesn’t have to break the bank.

1. Increase energy efficiency

One of the easiest places to start is cutting your energy use. Most of the world’s energy still comes from fossil fuels, making energy consumption a major driver of climate change.

At QCF, we recognise this and have taken action. “We started by switching to a green energy provider and removing our building’s gas supply to reduce our reliance on fossil fuels,” says Nick Payne, Building and Facilities Manager at QCF.

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Here are several cost-effective ways to improve energy efficiency across your business:

Switch to LED lighting

According to The Climate Group, lighting accounts for almost 5% of global CO2 (carbon dioxide) emissions. Switching to sustainable solutions can save up to 70% of energy.

LED lighting is more environmentally friendly than halogen light bulbs and more cost-effective in the long run. It lasts longer, uses less energy, and requires less maintenance, all of which help lower electricity bills.

Encourage staff to turn off unused devices

Sunsave estimates that electrical devices waste up to 30% of energy when left running, especially when plugged in.

Instead, encourage teams to fully switch off anything unused, especially when leaving for the day.

Choose energy-efficient hardware

Air conditioners, servers, printers, and computers/laptops all consume substantial energy. You’ve likely seen labels like this on electrical items before:

These labels tell you how energy-efficient a product is. The higher the rating, the less energy the appliance consumes and the more efficient it is. Check the appliance’s energy label and aim for products graded A to C.

For office electronics, look for the Energy Star label, which indicates the item has achieved the EU’s energy efficiency standards. Energy Star is a government-backed agency that assesses and grades office appliances on their energy efficiency.

2. Reduce, reuse, recycle

Also known as the three Rs, this simple framework can save your business money and promote a circular economy. Here’s how to apply it in the workplace:

Reduce waste

Start by going paperless where possible. You can consider:

• Switching to e-invoicing with tools such as QuickBooks and FreshBooks
• Using Docusign for electronic signatures rather than printing and physically signing documents
• Reducing paper memos by using digital collaboration tools like Slack or Microsoft Teams
• Implementing a paperless payroll system so employees can access payslips and other documents online

You can also cut waste by:

• Buying office supplies in bulk to reduce packaging waste and costs
• Encouraging employees to bring reusable coffee cups or water bottles
• Checking fridges and cupboards regularly to avoid food going to waste

Reuse items

Many people don’t realise how many everyday items we can repurpose, saving money and protecting the planet.

Here are three low-cost ways to reuse items in the workplace and make your resources go further:

• Avoid single-use materials like plastic and disposable cutlery – supply bamboo cups or glassware, for instance
• Choose refurbished IT equipment
• Furnish your office with upcycled furniture

Recycle

By recycling, SMEs can make an enormous difference to climate change. Recycling helps reduce the amount of waste in landfills and, therefore, greenhouse gas (GHG) emissions.

Make recycling as seamless as possible. Set up clearly labelled bins and consider training to help everyone dispose of waste correctly.

Recycle all core materials – like paper, card, food, and glass – as well as electronics and ink cartridges. Just remember to take electronics or ink cartridges to dedicated recycling points.

3. Choose sustainable materials

Go beyond reducing waste by choosing materials and suppliers that are eco-friendly:

• Use biodegradable or plant-based cleaning products
• Switch to suppliers that offer recycled, recyclable, or minimal packaging
• Favour couriers that use electric vans or bikes for local deliveries
• Support local producers and other sustainable businesses in your area

Sustainability is ongoing; you don’t have to immediately transform your entire supply chain. Start with small, intentional changes in line with your budget and scale over time.

4. Encourage remote working and green commuting

Transport is a major contributor to carbon emissions. The European Environment Agency says it accounts for around 25% of the EU’s total GHG emissions. Here’s a breakdown by transport type: